No. As of January 1, 2026, Illinois no longer uses the 200-transaction test for remote sellers. The current economic nexus threshold is $100,000 or more in cumulative gross receipts from sales of tangible personal property to Illinois purchasers during the applicable 12-month lookback period. Illinois Department of Revenue (IDOR) says sellers check that threshold quarterly, using the preceding 12 months.
Key takeaways
- As of January 1, 2026, Illinois no longer uses the 200-transaction test for remote sellers.
- The current remote-seller economic-nexus threshold is $100,000 in qualifying Illinois gross receipts during the preceding 12 months.
- Check the threshold quarterly and assess physical presence separately.
- Marketplace sales and facilitator records may affect the analysis; reconcile them rather than assuming they are excluded.
- Keep destination-address and shipping records, file on the assigned schedule, and confirm before stopping collection after sales decline.
Illinois’ current economic nexus threshold
A remote seller with no physical presence in Illinois must register, collect and remit Illinois retailers’ occupation tax when it meets the state’s $100,000 gross-receipts threshold for sales of tangible personal property to Illinois purchasers. The former alternative test—200 or more separate transactions—no longer applies to periods beginning January 1, 2026.
Meeting the threshold generally means collecting the applicable state and local tax on taxable Illinois sales, filing the required returns and remitting tax to IDOR. The threshold is not a tax-free allowance: it determines when a remote seller is required to collect under the economic-nexus rule. Product taxability and other obligations can depend on the seller’s facts. For a broader explanation, see Economic nexus in Illinois.
When Illinois removed the 200-transaction test
IDOR states that the 200-transaction threshold was removed effective January 1, 2026. Before that change, a remote seller could meet Illinois’ economic-nexus test by reaching either the gross-receipts threshold or the transaction-count threshold. Under the current rule, the $100,000 gross-receipts test is the threshold for remote sellers.
Sellers who previously registered because they met the transaction test should not assume that the old test still applies, or that they can automatically stop collecting. Review the applicable 12-month sales period and any registration or filing instructions from IDOR. If your status is unclear, the exact position depends on your circumstances—confirm with the state, or talk to us and we will check it for you.
Which sales count toward the $100,000 threshold?
The threshold is based on cumulative gross receipts from sales of tangible personal property to purchasers in Illinois. It is not based on the number of orders, the seller’s profit, or only the sales on one particular channel. A seller using a direct website and multiple marketplaces should review its Illinois sales across those channels rather than checking each storefront in isolation.
Marketplace sales may also be relevant to the seller’s threshold calculation. Illinois law and IDOR guidance address marketplace sales and certification that the marketplace facilitator is legally responsible for tax on those sales. Because the treatment can depend on the marketplace arrangement and the seller’s records, do not assume that every marketplace sale is either included or excluded without checking the applicable rule and documentation. Keep channel-level sales reports and facilitator tax information so the calculation can be supported.
Marketplace sales and inventory in Illinois
A marketplace facilitator may have its own Illinois collection and remittance responsibilities for sales it facilitates. That does not eliminate the need for a marketplace seller to assess its own nexus, registration, reporting and recordkeeping position. Confirm what the facilitator collects and remits, and retain its tax reports or certification where applicable.
Inventory stored in Illinois can raise a separate physical-presence question, including when inventory is held by a marketplace. Read Does Illinois marketplace inventory create physical-presence nexus? and Amazon FBA sales tax in Illinois for related issues. The answer can turn on how the inventory is held and used, so sellers should not treat the economic-nexus threshold as the only possible basis for an obligation.
Physical presence can create a separate nexus obligation
Yes. Illinois’ remote-seller threshold applies to sellers without physical presence in the state. A seller with an Illinois business location, employees or other in-state activity may have a collection obligation based on physical presence, even if its Illinois sales are below $100,000. Inventory in the state may also matter, subject to the specific rules that apply to marketplace inventory.
For that reason, check both sales volume and business activities. Do not use a low sales total as a reason to disregard a possible physical-presence obligation. The exact position depends on your circumstances—confirm with IDOR, or talk to us and we will check it for you.
How often to check, and what to do after crossing the threshold
IDOR instructs remote sellers to determine quarterly—at the end of March, June, September and December—whether they met or exceeded the threshold during the preceding 12-month period. Build that review into your close process and include all relevant Illinois sales channels and any marketplace documentation needed to support the calculation.
If you meet the threshold, review your registration status with IDOR, determine which sales are taxable, configure collection using the correct Illinois destination rate, and follow the filing frequency and return instructions assigned by the state. If you have already made taxable sales without collecting when required, address the exposure promptly rather than waiting for a notice. See Back sales tax and penalties in Illinois for related considerations. Sales Tax Compliance USA is a done-for-you service staffed by people; we can review your facts and help manage registration, filings and compliance.
Destination-based sales, filing and records
Remote sellers subject to Illinois destination-based tax generally use the delivery destination to determine the applicable local rate. IDOR requires destination-based sales to be reported through the state’s sales-tax return process, including Form ST-1 and applicable supporting schedules. The return and payment are generally due on the 20th day of the month following the end of the assigned reporting period; a due date falling on a weekend or Illinois state holiday moves to the next business day. Follow the filing frequency and instructions assigned to your account.
Keep records that establish the customer and the destination: the name and billing address, the exact delivery or possession address, and documentation supporting the location from which the property was shipped. Retain order-level sales data, invoices, refunds, marketplace statements, tax collected, exemption documentation where relevant, and filed returns and payment confirmations. IDOR warns that inadequate destination records can lead to an assessment using a 15% rate on gross receipts for sales whose location cannot be determined, as well as penalties and interest.
If sales fall below the threshold, deadlines and penalties
If your Illinois sales later fall below $100,000, do not assume that collection and filing obligations end immediately. IDOR’s guidance says a seller that meets the threshold is required to collect and remit applicable tax and file applicable returns for one year. Check the state’s current instructions and your account status before changing collection or stopping returns. If you no longer meet the threshold, confirm whether physical presence or another obligation still applies and ask IDOR how to close or update the account, if appropriate.
File and pay by the due date assigned to your reporting period, including when a required return has no sales to report. Late or missing returns and payments can result in tax assessments, penalties and interest. Sellers with past-due exposure can review Can Illinois remote sellers still enter the 2026 tax amnesty? and Can Illinois sellers use the 2026 remote-retailer amnesty?; eligibility and terms should be confirmed with the state because they depend on the seller’s circumstances.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
Illinois remote-seller nexus and compliance: what to check
| Situation | What it means | Practical next step |
|---|---|---|
| No Illinois physical presence; $100,000 or more in qualifying gross receipts in the preceding 12 months | The current remote-seller economic-nexus threshold is met. | Review registration, taxable products, destination rates, collection start and IDOR filing instructions. |
| No Illinois physical presence; fewer than $100,000 in qualifying gross receipts | The current economic-nexus threshold is not met on sales volume alone. | Continue quarterly reviews and check for physical presence or other obligations. |
| 200 or more transactions, but less than $100,000 in qualifying gross receipts | The transaction-count test was removed effective January 1, 2026; transaction count alone is no longer the current remote-seller threshold. | Review the current 12-month gross-receipts calculation and confirm any existing account obligations with IDOR. |
| Sales through a marketplace facilitator | The facilitator may collect and remit tax on facilitated sales, while marketplace sales and documentation can still matter to the seller’s threshold analysis. | Reconcile marketplace reports, facilitator certifications and direct-channel sales; verify the treatment for your arrangement. |
| Illinois inventory, employees or other in-state activity | Physical presence may create an obligation independently of the remote-seller sales threshold. | Assess the activity and inventory facts, including marketplace inventory, before concluding no registration is needed. |
| Sales later fall below $100,000 after the seller met the threshold | A lower later-period total does not automatically end collection or filing obligations; IDOR guidance provides a one-year obligation after meeting the threshold. | Check the applicable period, account status and IDOR instructions before stopping collection or returns. |
Frequently asked questions
Does Illinois still require remote sellers to collect sales tax?
Yes, when a remote seller meets the current $100,000 gross-receipts threshold for sales of tangible personal property to Illinois purchasers, or has a separate obligation such as physical presence. The seller must follow IDOR registration, collection, filing and payment requirements that apply to its facts.
How often should sellers check whether they meet Illinois’ nexus threshold?
IDOR says to test quarterly, at the end of March, June, September and December, using the preceding 12-month period. Include relevant sales channels and retain records supporting the calculation.
Do marketplace sales count toward Illinois economic nexus?
Marketplace sales can be relevant to the seller’s threshold calculation, and Illinois rules address sales made through a facilitator and facilitator certification of tax responsibility. The precise treatment depends on the applicable rule and the seller’s marketplace documentation, so reconcile facilitator reports and confirm the calculation rather than assuming those sales are excluded.
What if my Illinois sales fall below the threshold?
Do not stop collecting or filing automatically. IDOR guidance says a seller that meets the threshold must collect, remit and file applicable returns for one year; check your account instructions and whether physical presence or another obligation remains before changing your status.
What records should I keep for Illinois sales tax returns?
Keep customer billing details, the exact delivery or possession address, shipping-origin support, order and refund records, marketplace statements, tax and exemption documentation, and filed returns and payment confirmations. IDOR warns that insufficient destination information can result in an assessment at a 15% rate on gross receipts for sales with undetermined locations, plus possible penalties and interest.
Official sources
- https://tax.illinois.gov/research/taxinformation/sales/rot.html
- https://tax.illinois.gov/research/publications/bulletins/fy-2026-12.html
- https://tax.illinois.gov/research/publications/pubs/overview-of-destination-based-sales-tax.html
- https://tax.illinois.gov/research/taxinformation/sales/destination-based-sales-tax-assistance.html
- https://tax.illinois.gov/forms/sales/salesandusetax/st-1-instructions.html
- https://www.ilga.gov/Legislation/ILCS/Articles?ActID=582&ChapterID=8&Print=True
Related reading
- Does illinois marketplace inventory create physical-presence nexus?
- Economic nexus in Illinois
- Amazon Fba Sales Tax in Illinois
- Back sales tax and penalties in Illinois
- Our sales tax compliance services
Getting this handled
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Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This article is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.